Fell 5%. Shanghai nickel surprise diving, stainless steel prices up pressure
Stainless steel prices did not continue to rebound last week at the beginning of the week, nickel prices unexpectedly dive intraday, driving stainless steel prices under pressure. By the end of the day, Shanghai main nickel contract at 8650 yuan/ton to 165,060 yuan/ton, or 4.98 percent. Stainless steel main contract rose slightly 25 yuan/ton to 15340 yuan/ton, or 0.16%.
Overseas interest rate expectations superimposed on the recovery of domestic power rationing, commodity weakness downward
On Friday night, Fed Chair Powell, speaking at the annual meeting of global central banks, said the size of a US interest rate hike in September was contingent on headline data, arguing that the priority now was to bring inflation down to 2%. The Federal Reserve continued to issue hawkish remarks, investors in September 75BP interest rate hike expectations rose sharply, leading to the rapid rise of the dollar index, the breakthrough before the high once reached 109.48, the overall price trend of nonferrous commodities to suppress, nickel price led the market down.
In addition, with the domestic provinces and cities continuous rainfall, the temperature around the drop, electricity tension has been alleviated, industrial electricity gradually recovered, the general carbon steel plant began to rise, thread price high fall, has fallen to 4000 yuan below. Due to the stainless steel warehouse at a very low level, the current only more than 1000 tons, the price of stainless steel support has not been significantly with the fall.
Up 100! Traders stand price, the market turnover fell
Morning inquiry, Wuxi market 304 private cold rolling base price quoted to 15600 yuan/ton, up 100 yuan/ton compared with last Friday, hot rolling price at 15400 yuan/ton, flat compared with last Friday. Delong opened in the afternoon, the cold rolled plate price is 15,600 yuan/ton, the hot rolled plate price is 15,500 yuan/ton, the same as the last price, the rebate to be determined.
Due to the day black material, non-ferrous commodity prices dive high, nickel prices fell more than 5%, stainless steel futures prices follow commodity shocks fall, the end of the five consecutive rise! And traders still hold the price mentality, private cold rolling price maintained at 15500-15600 yuan/ton, spot transaction in general, unlike last week hot scene.
In terms of cost, the recent weak operation of nickel iron and chromium iron prices, 304 private cold rolling production costs around 15900 yuan/ton, a number of steel mills have been in a small deficit, high cost steel mills especially losses, steel mills to reduce production is more common.
Overall, the current 304 cold rolling production is in a state of loss, superposition order is not smooth, steel production shrinkage. In the warehouse low impact, stainless steel period spot prices slightly up. But the Fed hawkish rate hike attitude, so that commodity prices weak operation, superimposed stainless steel demand recovery is still relatively slow, steel shipments positive, short-term price rebound road slightly twists and turns.